1. 1300 Clay Street, Suite 1000, Oakland, CA 94612 phone 510-839-8200 fax 510-208-8282 A Division of Zions First National Bank Peralta Community College District Presentation to the Board of Trustees June 2, 2015

2. Abbreviated Timeline Peralta Community College District | page 1

3. 2005 Bond Structure Peralta Community College District | page 2.

4. 2006 Restructuring  In October 2006, the District purchased from investors the 2006, 2007, and 2008 maturities and restructured $8.8 million as convertible capital appreciation bond due in 2049. The 2009 and 2010 maturities were left unchanged. Peralta Community College District | page 3 Original Structure MaturityPrincipal (August 1)AmountInterest RatePrice 2006$1,725,0004.71%100% 2007$3,180,0004.82100 2008$4,110,0004.87100 2009$5,340,0004.91100 2010$5,660,0004.94100 Amended Structure MaturityInitialAccreted (August 1)Principal AmountPrincipalInterest Rate 2049$8,800,000$10,688,0446.25%

5. 2006 Swaps  District entered into six forward starting swaps in 2006 to create a synthetic fixed rate financing. Presentation to the Las Lomitas Elementary School District Board of Trustees | page 4 AmortizingEffective Fixed Rate SeriesNational ($MM)DateMaturity(Act/360) B-1$33.9508/5/20108/5/20154.90% B-238.4508/5/20158/5/20205.16% B-343.1758/5/20208/5/20255.28% B-457.5258/5/20258/5/20315.21% B-586.6508/5/20318/5/20395.06% B-6134.4758/5/20398/5/20494.94% Total notinal$394.225

6. 2009 Restructuring  In February 2009, the District structured the B-1 ARS tranche as fixed rate bond. The 2005 current interest rate maturities of 2009 and 2010 were refunded into the 2009 financing. Peralta Community College District | page 5 Amended Structure MaturityPrincipal AmountInterest RatePrice (August 1) 2010$3,660,0004.415100 20114,785,000 4.870100 20126,120,0005.400100 20137,720,0005.773100 201526,440,0006.423100 Original Structure MaturityPrincipal (August 1)AmountInterest Rate Price 2009$5,340,0004.91100 20105,660,0004.94100 2015 33,590,000 4.964 100

7. 2011 Restructuring  In October 2011, the District refunded and restructured the 2009 bonds to smooth debt service payments. Peralta Community College District | page 6 Amended Structure Maturity (Aug1)Principal AmountInterest RatePrice 20131,595,0003.47%100 20142,590,0003.979100 20162,265,0004.465100 20171,095,0005.330 100 20181,270,0005.680100 20191,695,0005.959100 20202,465,0006.159100 20211,570,0006.309100 20222,120,0006.509100 20232,400,0006.709100 20242,965,0006.809100 20254,005,0006.909100 20262,825,0006.659100 202724,645,0007.309100 Original Structure Maturity (Aug 1)Principal AmountInterest RatePrice 2010$3,660,0004.415100 20114,785,000 4.870100 20126,120,0005.400100 20137,720,0005.773100 201526,440,0006.423100

8. Prior Financing Review Peralta Community College District| page 7  December 2005Issued $153.7 million in Bonds, including convertible CABs to fund $150 million of Retiree Health Benefit Costs.  October 2006Through an exchange and modification of bonds, $8.8 million of bonds originally maturing in 2006-08 were extended through 2049.  November 2006Entered into six fixed rate forward starting interest rate swaps (receiving LIBOR & paying fixed rate)  February 2009Restructured remaining 2005 fixed-rate bonds maturing in 2009-10 and B-1 Tranche of ARS into fixed-rate bonds maturing from 2010-15.  October 2011Restructured February 2009 transaction, maturities from 2011-15 to mature from 2013-31.

9. Current Situation Peralta Community College District | page 8  The District’s B-2 Tranche if fully accreted at $38,450.00 on August 5, 2015  B-2 Tranche would automatically covert into Auction Rate Securities (ARS)  ARS market remains dormant with high interest rates  Investors of B-2 Tranche would receive the default rate of 17% of converted to ARS  Indenture requires several steps to convert B-2 into variable rate bond.  B-2 Interest rate swap starts August 5, 2015  In the current market, the District would pay a fixed rate of 5.158% and receive LIBOR (currently about 0.20%) from Morgan Stanley

10. Options  Convert ARS to Fixed rate bonds  Twenty year maturity  Current interest Bonds  Callable in 10 years  With or without swap  Termination is approximately equal to five week payments over 5 years  Convert ARS to Variable Rate Bonds with 5 year maturity  With credit enhancement Letter of Credit  Highest credit rating  Callable  With out credit enhancement  No rating  Private Placement Presentation to the Las Lomitas Elementary School District Board of Trustees | page 9

11. Plan of Finance Peralta Community College District | page 10  Convert B-2 tranche of ARS into variable rate bonds  Variable rate bonds (VRDOs) are an alternative for the ARS  VRDOs require credit enhancement and a broker-dealer to reset the interest rates on the bonds on a weekly basis  Callable on a weekly basis and will provide flexibility for the District to redeem or restructure bonds if needed  Swap in place to mitigate some interest rate expense

12. Approval of Financing Peralta Community College District | page 11  The District is approving a resolution that authorizes the process to convert ARS into a variable rate bond  The District is also approving:  Form of the Reimbursement Agreement with Barclays Bank plc  Supplemental Indenture to allow the financing mechanics to accomplish this financing  Going forward, the District will approve an offering disclosure document (Official Statemetn) as well as a remarketing agent agreement at a future meeting